Good for them. But Bitcoin Banking is an oxymoron.
Charted banks have no anonymity.
It seems this "Trust Company" may become one of the central ''depositories (or suppositories)'' of the larger Bitcoin traders. Again, a ''central Bitcoin bank'' is an oxymoron too ...
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[M]r. Lawsky has been working for more than a year to establish a regulatory procedure to deal with the unusual nature of virtual currencies and the unique security risks that they present. He has proposed a so-called BitLicense and has said he hopes to complete it later this month.
ItBit avoided the need for a BitLicense by instead applying for a trust company charter, which appears to come with even stricter regulations. It is the first trust company to be created in New York since the financial crisis. ...
New York Just Issued Its First-Ever Bitcoin Banking License
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Quote:
[T]he nascent Bitcoin trading platform announced this morning that it has officially received a banking trust charter under New York State law. The groundbreaking new license makes itBit the only U.S.-chartered and supervised Bitcoin exchange compliant with New York and federal law, Techcrunch reports.
The trust company charter lends itBit ?bank-like status,? as The New York Times put it, not to mention some hefty bragging rights within the Bitcoin community. ?This is a big deal,? itBit co-founder and CEO Charles Cascarilla told the Times, ?not just for us, but for the entire Bitcoin industry.? ...
http://www.nytimes.com/2015/05/08/bu...tate.html?_r=1
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